While the broader condominium market experiences cooling conditions and inventory surpluses, a distinct trend has emerged favoring spacious older units over their smaller, newer counterparts. This phenomenon reflects significant demographic shifts, as older buyers now account for more than a quarter of condo mortgage applications and represent the majority of repeat buyers in the segment.
The aging population and surge in retirees seeking downsized luxury has created high demand for larger units, with senior housing occupancy reaching 87.7% in late 2024, marking the highest level in years. Many downsizers from single-family homes specifically prefer spacious layouts and amenities typically found in older condos rather than smaller, newer units that dominate current construction pipelines.
Market dynamics reveal a stark contrast in absorption rates between unit types. While condo inventory has climbed nearly 80% since mid-2022, smaller newer condos face notably slower absorption rates, with average time to sell tripling from under 30 days in 2022 to 90 days in 2025.
Conversely, larger older condos benefit from limited new supply in desirable locations, helping maintain price stability amidst broader oversupply conditions. Singapore’s property market demonstrates similar patterns, where transparent regulatory frameworks have helped maintain market stability despite global uncertainties.
Buyer preferences increasingly favor features typically absent in compact units, including storage space, larger kitchens, and in-unit laundry facilities prevalent in older spacious condos. Established buyers also prioritize lifestyle amenities such as pools, fitness centers, and social spaces commonly found in older buildings, while seeking walkability and proximity to services characteristic of established neighborhoods.
Repeat buyers, who constitute approximately 50% of all condo mortgage activity nationally, demonstrate clear preference for size and comfort over newer construction. This buyer segment values flexibility for guests, hobbies, and home offices, requirements that integrate well with existing layouts of larger condos. Industry experts project continued demand outpacing supply as construction starts have declined significantly due to high development costs and lending constraints.
Additionally, spacious units often provide better sound insulation and privacy, key factors for retirees and professionals working from home. The cash-rich investors segment, representing 19% of condo mortgage applications, also gravitates toward larger units for rental income potential and long-term value appreciation.
Financial performance data supports this trend, as spacious older units retain value better during market cooling periods. Large units in prime locations experience softer price declines or maintain stability, while offering lower price per square foot compared to newer alternatives, creating enhanced perceived value for size-conscious buyers in today’s market environment.
